67 FR 62128, October 3, 2002
DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-835]
Final Affirmative Countervailing Duty Determination: Certain
Cold-Rolled Carbon Steel Flat Products From Brazil
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has made a final
determination that countervailable subsidies are being provided to
producers and exporters of certain cold-rolled carbon steel flat
products from Brazil. The subsidy rates in this final determination
differ from those in the preliminary determination. The revised final
subsidy rates for the investigated producers/exporters are listed below
in the ``Suspension of Liquidation'' section of this notice.
EFFECTIVE DATE: October 3, 2002.
FOR FURTHER INFORMATION CONTACT: Sean Carey at (202) 482-3964 or Holly
Hawkins at (202) 482-0414, Office of AD/CVD Enforcement VII, Group III,
Import Administration, International Trade Administration, U.S.
Department of Commerce, Room 7866, 14th Street and Constitution Avenue,
NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Applicable Statute and Regulations
Unless otherwise indicated, all citations to the statute are
references to the provisions of the Tariff Act of 1930, as amended. In
addition, unless otherwise indicated, all citations to the Department's
regulations are to 19 CFR part 351 (2001).
Petitioners
The petition in this investigation was filed on September 28, 2001,
by Bethlehem Steel Corporation; United States Steel LLC; LTV Steel
Company, Inc.; Steel Dynamics, Inc.; National Steel Corporation; Nucor
Corporation; WCI Steel, Inc.; and Weirton Steel Corporation
(collectively, ``the petitioners'').
Case History
The following events have occurred since the publication of the
preliminary determination in the Federal Register. See Notice of
Preliminary Affirmative Countervailing Duty Determination and Alignment
with Final Antidumping Duty Determinations: Certain Cold-Rolled Carbon
Steel Flat Products from Brazil, March 4, 2002 (67 FR 9652).
On March 21, 2002, we issued a fourth supplemental questionnaire
requesting more information on the National Bank for Economic and
Social Development (BNDES) loan programs and on the Program to Induce
Industrial Modernization of the State of Minas Gerais (PROIM). On April
9, 2002, respondents filed a response to this supplemental
questionnaire. We issued a fifth supplemental questionnaire on May 22,
2002 requesting further clarification on the BNDES programs, and we
received a response to this questionnaire on June 3, 2002.
From June 10, 2002 to June 28, 2002, we conducted verification of
the questionnaire responses submitted by the Government of Brazil
(GOB), Companhia Siderurgica Nacional (CSN), Usinas Siderurgicas de
Minas Gerais (USIMINAS), and Companhia Siderurgica Paulista (COSIPA).
On August 23, 2002, we received a combined case brief from the GOB,
USIMINAS, COSIPA, and CSN. On this date, we also received a case brief
filed by petitioners. On August 29, 2002, we received a combined
rebuttal brief from the GOB, and the three respondent companies,
USIMINAS, COSIPA, and CSN, as well as a rebuttal brief from the
petitioners.
With respect to scope, in the preliminary LTFV determinations in
this and the companion cold-rolled steel investigations, the Department
preliminarily excluded certain porcelain enameling steel from the scope
of these investigations. See Scope Appendix to the Notice of
Preliminary Determination of Sales at Less Than Fair Value: Certain
Cold-Rolled Carbon Steel Flat Products from Argentina,
[[Page 62129]]
67 FR 31181 (May 9, 2002) (Scope Appendix--Argentina Preliminary LTFV
Determination). On June 13, 2002, we issued a preliminary decision on
the remaining 75 scope exclusion requests filed in a number of the on-
going cold-rolled steel investigations (see the June 13, 2002,
memorandum regarding ``Preliminary Scope Rulings in the Antidumping
Investigations on Certain Cold-Rolled Carbon Steel Flat Products from
Argentina, Australia, Belgium, Brazil, France, Germany, India, Japan,
Korea, the Netherlands, New Zealand, the People's Republic of China,
the Russian Federation, South Africa, Spain, Sweden, Taiwan, Thailand,
Turkey, and Venezuela, and in the Countervailing Duty Investigations of
Certain Cold-Rolled Carbon Steel Flat Products from Argentina, Brazil,
France, and Korea'' (Preliminary Scope Rulings), which is on file in
the Department's Central Records Unit (CRU), room B-099 of the main
Department building. We gave parties until June 20, 2002, to comment on
the preliminary scope rulings, and until June 27, 2002, to submit
rebuttal comments. We received comments and/or rebuttal comments from
petitioners \1\ and respondents from various countries subject to these
investigations of cold-rolled steel. In addition, on June 13, 2002,
North American Metals Company (an interested party in the Japanese
proceeding) filed a request that the Department issue a ``correction''
for an already excluded product. On July 8, 2002, the petitioners
objected to this request.
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\1\ The petitioners in this investigation are Bethlehem Steel
Corporation, LTV Steel Company, Inc., National Steel Corporation,
Nucor Corporation, Steel Dynamics, Inc., United States Steel
Corporation, WCI Steel, Inc., and Weirton Steel Corporation
(collectively, the petitioners).
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At the request of multiple respondents, the Department held a
public hearing with respect to the Preliminary Scope Rulings on July 1,
2002. The Department's final decisions on the scope exclusion requests
are addressed in the Scope of Investigation section below.
Period of Investigation
The period for which we are measuring subsidies, or period of
investigation (POI) is calendar year 2000.
Scope of Investigation
For purposes of this investigation, the products covered are
certain cold-rolled (cold-reduced) flat-rolled carbon-quality steel
products. A full description of the scope of this investigation is
contained in the Scope Appendix attached to the Notice of Correction to
Final Determination of Sales at Less Than Fair Value: Certain Cold-
Rolled Carbon Steel Flat Products from Australia, 67 FR 52934 (Aug. 14,
2002). For a complete discussion of the comments received on the
Preliminary Scope Rulings, see the memorandum regarding ``Issues and
Decision Memorandum for the Final Scope Rulings in the Antidumping Duty
Investigations on Certain Cold-Rolled Carbon Steel Flat Products from
Argentina, Australia, Belgium, Brazil, France, Germany, India, Japan,
Korea, the Netherlands, New Zealand, the People's Republic of China,
the Russian Federation, South Africa, Spain, Sweden, Taiwan, Thailand,
Turkey, and Venezuela, and in the Countervailing Duty Investigations of
Certain Cold-Rolled Carbon Steel Flat Products from Argentina, Brazil,
France, and Korea,'' dated July 10, 2002, which is on file in CRU.
Analysis of Subsidy Programs
The complete analysis of the programs under investigation is
included in the Issues and Decision Memorandum for the Final
Affirmative Countervailing Duty Determination in the Countervailing
Duty Investigation of Certain Cold-Rolled Carbon Steel Flat Products
from Brazil, from Joseph A. Spetrini, Deputy Assistant Secretary for
AD/CVD Enforcement III to Faryar Shirzad, Assistant Secretary for
Import Administration, dated September 23, 2002.
Programs Determined To Confer Subsidies
We have determined that the following programs confer subsidies:
A. Federal Programs
1. Equity Infusions
2. ``Presumed'' Tax Credit for the Program of Social Integration
and the Social Contributions of Billings on Inputs Used in Exports
(``PIS/COFINS'')
3. BNDES Loan Programs
a. FINAME
b. BNDES Export Import Financing
c. BNDESPAR
B. Provincial Government Program
PRO-INDUSTRIA
Program Determined Not To Confer a Subsidy
We have determined that the FINEM program does not confer a
subsidy.
Programs Determined Not To Be Used
We have determined that the following programs have not been used.
A. Federal Program
PROEX
B. Provincial Government Program
PROIM
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the Issues and Decision Memorandum
for the Final Affirmative Countervailing Duty Determination in the
Countervailing Duty Investigation of Certain Cold-Rolled Carbon Steel
Flat Products from Brazil, from Joseph A. Spetrini, Deputy Assistant
Secretary for AD/CVD Enforcement III to Faryar Shirzad, Assistant
Secretary for Import Administration, dated September 23, 2002 (Decision
Memorandum), which is hereby adopted by this notice. Attached to this
notice as Appendix I is a list of the programs investigated and a list
of the issues which parties have raised and to which we have responded
in the Decision Memorandum. Parties can find a complete discussion of
all programs and all issues raised in this investigation and the
corresponding recommendations in this public memorandum which is on
file in the CRU. In addition, a complete version of the Decision
Memorandum can be accessed directly on the Internet at http://
enforcement.trade.gov/frn/ under the heading ``Brazil.'' The paper copy and
electronic version of the Decision Memorandum are identical in content.
Suspension of Liquidation
In accordance with section 777A(e)(1) of the Act, we have
calculated an individual subsidy rate for each producer/exporter under
investigation. We determine the total estimated net subsidy rate for
each company to be the following:
------------------------------------------------------------------------
Net subsidy
Product/exporter rate
(percent)
------------------------------------------------------------------------
USIMINAS/COSIPA............................................ 13.99
CSN........................................................ 7.90
All Others................................................. 13.07
------------------------------------------------------------------------
In accordance with our preliminary affirmative determination, we
instructed Customs to suspend liquidation of all entries of cold-rolled
steel from Brazil, which were entered or withdrawn from warehouse for
consumption on or after March 4, 2002, the date of the publication of
our preliminary determination in the Federal Register, and to require a
cash deposit or bond for such entries of the merchandise in the amounts
indicated in the Preliminary Determination. In accordance with section
703(d) of the Act, we instructed Customs to discontinue the suspension
of liquidation for merchandise entered on or after July 3, 2002, but to
continue the suspension of liquidation of entries
[[Page 62130]]
made between March 4, 2002 and July 3, 2002.
We will reinstate suspension of liquidation under section 706(a) of
the Act for all entries if the ITC issues a final affirmative injury
determination, and we will require a cash deposit of estimated
countervailing duties for such entries of merchandise in the amount
indicated above. This suspension of liquidation, if reinstated, will be
effective on the date of publication of the countervailing duty order.
If the ITC determines that material injury, or threat of material
injury, does not exist, this proceeding will be terminated and all
estimated duties deposited or securities posted as a result of the
suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an Administrative Protective Order (``APO''), without the written
consent of the Assistant Secretary for Import Administration.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Failure to comply is a violation of the APO.
This determination is published pursuant to sections 705(d) and
777(i) of the Act.
Dated: September 23, 2002.
Faryar Shirzad,
Assistant Secretary for Import Administration.
Appendix I--Issues and Decision Memorandum
I. Subsidies Valuation Information
A. Allocation Period
B. Cross Ownership and Attribution of Subsidies
C. Equityworthiness
D. Equity Methodology
E. Creditworthiness
F. Discount Rates
G. Benchmarks for Loans
H. Trading Companies
I. Changes in Ownership
II. Programs Determined to Confer Subsidies
A. Federal Programs
1. Equity Infusions
2. ``Presumed'' Tax Credit for the Program of Social Integration
and the Social Contributions of Billings on Inputs Used in Exports
(``PIS/COFINS'')
3. BNDES Loan Programs
a. FINAME
b. BNDES Export Import Financing
c. BNDESPAR
B. Provincial Government Program
PRO-INDUSTRIA
III. Program Determined Not to Confer A Subsidy
FINEM
IV. Programs Determined Not to be Used
A. Federal Program
Programa de Financiamento as Exportacoes (PROEX)
B. Provincial Government Program
Program to Induce Industrial Modernization of the State of Minas
Gerais (PROIM)
V. Analysis of Comments
Comment 1: CSN, USIMINAS and COSIPA Privatization
Comment 2: PIS/COFINS--Direct Taxes v. Indirect Taxes
Comment 3: PIS/COFINS-Rebate of Prior-Stage Cumulative Indirect
Taxes
Comment 4: PIS/COFINS Credit--Excessive Remission
Comment 5: FINEM Financing and Specificity
Comment 6: FINAME as an Import Substitution Program
Comment 7: FINAME Financing and Specificity
Comment 8: Integral Linkage of FINAME and FINEM
Comment 9: Financial Contribution and Benefit of BNDES Loan
Programs
Comment 10: BNDES-ExIm Financing and Specificity
Comment 11: BNDESPAR Program
Comment 12: PRO-Industria-Specificity
Comment 13: Non-Use of PROEX
VI. Total Ad Valorem Subsidy Rate
VII. Recommendation
[FR Doc. 02-24797 Filed 10-2-02; 8:45 am]
BILLING CODE 3510-DS-P